Green Ammonia pilot plants and their implications for the fertiliser - PDF document

22/04/2020 The forces driving industrial scale-up of Green Ammonia pilot plants and their implications for the fertiliser industry IFS webinar, April 15, 2020 Trevor Brown, Ammonia Energy Association 1 Ammonia Energy Association A global trade association that advocates for the responsible use of ammonia in a sustainable energy economy. ammoniaenergy.org 2 2 1

22/04/2020 Ammonia Energy Association Step 1: decarbonize ammonia production. Step 2: adopt ammonia in energy markets. ammoniaenergy.org 3 3 Member List, April 2020 PLATINUM MEMBER: Yara*. GOLD MEMBERS: AFC Energy, Airgas, Casale*, Enaex, Engie, Fortescue Metals Group, KBR*, Monolith Materials, Origin Energy, Proton Ventures*, thyssenkrupp Industrial Solutions, Tri-State Generation & Transmission. SILVER MEMBERS: Argus Media, BASF, Bureau Veritas, Duiker Combustion Engineers, Equinor, GTI, Haldor Topsøe, Hydrogenics, Nel Hydrogen*, Organics Group, Shell, Stamicarbon, Starfire Energy*, Total, Trammo, Wabash Valley Resources, Woodside Energy. MEMBERS: A. P. Moller-Maersk, Air Liquide, AmmoniaIndustry.com, Arranged, AustrianSolar, Brittany Ferries, C-Job Naval Architects, Carbon-Neutral Consulting*, CHZ Technology LLC, Cura IT, Eneus Energy, ESNA, Exmar, Hydrogenca, IT Power Australia, ITM Power, JBS&G, John Cockerill, Linde, MicroEra Power*, Nebraska Public Power District, NextEnergyUS, Renewable Solutions*, SAFCell, SBM Schiedam, Syntex, Terrestrial Energy*, Vopak. 4 * indicates member of Board of Directors 4 2

22/04/2020 Green Ammonia — Production Pilot plants, Revamps, Industrial Feasibility 5 5 Enaex — Cusco, PE (1962) Capacity: 10,000 tpy ammonia (estimate). Feedstock: hydro power. Note: Only remaining commercial electrolysis-ammonia plant (Uhde). Nutrien — Joffre, AB (1987) Capacity: 490,000 tpy ammonia. Feedstock: byproduct hydrogen. Note: 25% reduction in carbon footprint, offsets company carbon tax liability. Showa Denko — Kawasaki, JP (2003) Capacity: 60,000 tpy ammonia. Feedstock: waste plastic / natural gas. Note: 65% of hydrogen comes from plastic; sells low-carbon deNOx fluid ( Ecoann™) in protected market (“eco-friendly goods for procurement”). Yara / BASF — Freeport, TX (2018) Capacity: 800,000 tpy ammonia. Feedstock: byproduct hydrogen. Note: 25% reduction in carbon footprint. 6 6 3

22/04/2020 “Green Ammonia” is not black and white, but shades of grey. Renewable hydrogen is one feedstock. Other hydrogen sources include recycled waste, industrial byproduct, or fossil fuels without carbon emissions. “Low-Carbon Ammonia” is available today at industrial scale. 7 7 University of Minnesota — Morris, MN (2014) Capacity: 25 tpy ammonia. Feedstock: wind power. Note: Small-scale, distributed model, driving chemical engineering / economics research. Siemens — Harwell, UK (2018) Capacity: 10 tpy ammonia. Feedstock: wind power Note: Haber-Bosch + intermittent power, informs electricity business cases. FREA / JGC Corporation — Koriyama, JP (2018) Capacity: 7 tpy ammonia. Feedstock: wind / solar power. Note: Catalysts optimized for low pressure Haber-Bosch. Also: ammonia combustion (gas turbine). OCP — Jorf Lasfar, MA (date TBD) Capacity: TBD. Feedstock: solar power. Note: Collaboration with Fraunhofer IMWS (Germany). 8 8 4

22/04/2020 Enaex — Antofagasta, CL (date TBD) Capacity: 20,000 tpy ammonia. Feedstock: solar power. Note: Pilot plant, 62 MWp solar / 47 MW electrolyzer. Engie: feasibility study. Proton Ventures / Siemens / Yara — Goeree-Overflakkee, NL (date TBD) Capacity: 20,000 tpy ammonia. Feedstock: wind / tidal power. Note: Regional "green hydrogen" economy. SiemensGamesa — Skive, DK (date TBD) Capacity: TBD. Feedstock: wind power. Note: Upstream industry, developing downstream markets. Ballance Agri-Nutrients — Kapuni, NZ (date TBD) Capacity: 5,000 tpy ammonia (estimate). Feedstock: wind power. Note: 16 MW wind turbines, NZ$50 million budget. 9 9 Queensland Nitrates — Moura, AU (date TBD) Capacity: 20,000 tpy ammonia. Feedstock: solar power. Note: Feasibility; partners include Incitec Pivot / Wesfarmers JV; partners Neoen, Worley. Dyno Nobel — Moranbah, AU (date TBD) Capacity: 60,000 tpy ammonia (estimate). Feedstock: solar power. Note: Feasibility; proposal is for 210 MW solar / 160 MW electrolyzer. Yara — Pilbara, AU (2006 / TBD) Capacity: 25,000 tpy ammonia. Feedstock: natural gas / solar power. Note: 850,000 tpy current capacity. Addition of 100 MW solar, 50-60 MW electrolyzer; future hydrogen tie-in already completed during 2018 turnaround. Engie feasibility. H2U / thyssenkrupp — Port Lincoln, AU (TBD) Capacity: 20,000 tpy ammonia. Feedstock: wind / solar power. Note: Business case demonstration for renewable energy exports (“Hydrogen Hubs”), with two under development in South Australia and Queensland (up to 3 GW). 10 10 5

22/04/2020 Enaex — Antofagasta, CL (date TBD) Capacity: 350,000 tpy ammonia. Feedstock: solar power. Note: Full scale at 1,030 MWp solar / 778 MW electrolyzer. Engie: feasibility study. Wabash Valley Resources — Terre Haute, IN (date TBD) Capacity: 550,000 tpy ammonia. Feedstock: pet coke. Note: US Dept of Energy funding for CCS. 45Q tax credits (carbon sequestration), and LCFS credits (reduction in ethanol fuel carbon intensity). Haldor Topsøe — Foulum, DK (2025) Capacity: 300 tpy ammonia (estimate). Feedstock: wind power. Note: Solid oxide electrolyzer, no ASU, modular. Energy efficiency estimated at 7.2 MWh (26 GJ), equal to best available technology (world-scale SMR-Haber Bosch). Yara — Porsgrunn, NO (2022) Capacity: 2,500 tpy ammonia (estimate). Feedstock: hydro power (grid). Note: 5 MW electrolyzer drives manufacturing scale-up, reduces unit capex. Electrifies 1% of plant capacity, so existing Haber-Bosch plant will produce 500,000 tpy of 99% fossil ammonia but, with certification, can market 5,000 tpy of 100% green ammonia. 11 11 Green Ammonia is happening, but this transition is not necessarily driven by fertilizer economics. 12 12 6

22/04/2020 Green Ammonia — Markets To illustrate the scale of the opportunity one example: Maritime Fuel International Maritime Organization (IMO) set target in 2018: 50% GHG emission reduction by 2050 (impossible with any fossil fuel) 13 13 Maritime fuel: market size Tristan Smith et al, UMAS / Global Maritime Forum, “Aggregate investment for the decarbonisation of the shipping industry,” January 19, 2020 https://www.globalmaritimeforum.org/news/the-scale-of-investment-needed-to-decarbonize-international-shipping 14 14 7

22/04/2020 Maritime fuel: infrastructure Tristan Smith et al, UMAS / Global Maritime Forum, “Aggregate investment for the decarbonisation of the shipping industry,” January 19, 2020 https://www.globalmaritimeforum.org/news/the-scale-of-investment-needed-to-decarbonize-international-shipping 15 15 Maritime fuel: first demonstration in 2024 Viking Energy: North Sea supply vessel, owned by Eidesvik, contracted to Equinor, to be fueled by Yara in 2024. Announced: 2 MW SOFC, running 3,000 hours. Implied: 1,600 tons green ammonia (@60% efficiency, 6.25 MWh/ton) https://www.ammoniaenergy.org/articles/viking-energy-to-be-retrofit-for-ammonia-fuel-in-2024/ 16 16 8

22/04/2020 Green Ammonia — what’s next? This is happening, driven by forces external to fertilizer. This downstream industry will have a new upstream. Low-carbon ammonia is already widely available, but not yet marketed. Renewable ammonia will soon be available, starting in regional hotspots. Certification will enable global commoditization and trading. 17 17 Thank you tbrown@ammoniaenergy.org ammoniaenergy.org 18 18 9